Banking News

The prospect of record low savings rates continuing is forcing many savers to review how they allocate their capital in an attempt to achieve the level of returns they have previously enjoyed. Investing in the stock market inevitably involves putting your capital at risk however there is a middle ground which continues to attract increasing interest – the structured deposit. With this in mind, we take a deeper look at this savings alternative to help understand why more and more savers are starting to see their appeal. more

With the current economic environment asking savers far more questions than it gives answers, it is good to know that there are alternatives available. We take a look at one such alternative that is proving particularly popular as savers face the harsh reality that the more traditional fixed rate savings products are failing to meet their needs. more

Millions of savers are facing the harsh realisty that there is little hope of change to interest and savings rates in the coming years. However, those with Cash ISAs do have one further option to consider – the ISA transfer. We take a closer look at why this is becoming a rising trend as well as what this could mean for those looking for the potential to improve the returns from their capital. more

With so many savers joining income investors in the hunt for high yields, being able to quickly understand and compare the numerous options available has become even more important. We therefore compare two of our most popular income investments to help understand what is driving their popularity and why they might meet your income needs. more

Christmas spending cutbacks as parents feel the pinch

14 December 2009 / by Andy Davies

Parents feeling the pinch of the recession are planning to cut back on the amount of presents they buy for their children this Christmas, according to uSwitch.com.

New research by the comparison website has revealed that 56 per cent of people are going to buy fewer presents, while 45 per cent are going to cut back on how much they spend on food and drink.

Meanwhile, in a bid to save money over the festive season, nearly four out of five people said they would look for bargains and sale items as gifts this year.

Expensive gifts such as the latest gadgets will be off the shopping list for 44 per cent of people, while 10 per cent of respondents said they would buy more traditional gifts, such as board games.

However, while many parents have said they will buy fewer gifts this Christmas, only 32 per cent of those who are going to spend less intend to tell their children the reason why, while just over a quarter of parents optimistically hope their children do not notice the cutbacks.

This has led uSwitch.com to claim that parents are "missing a golden opportunity" to explain the financial facts of life to their children.

Commenting, Ann Robinson, director of consumer policy at uSwitch.com, said that despite many households planning ahead and saving for Christmas this year, four in ten people are going to experience financial worry in the New Year as a result of Christmas spending.

"That's why it's so important that children understand the concept of cutting back too – explaining what a tighter family budget can mean and getting children involved is a vital part of their development.

"Shielding them from the impact of the recession this Christmas or just hoping they won't notice is not doing them any favours – understanding money, budgets and spending will set them up for the future," she said.

Ms Robinson added that people should continue to enjoy Christmas, "but in a more simple and honest way".

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